'He IS a spy': Ex-Special Forces soldier held for murder in Pakistan confirmed as CIA agent

More time: Raymond Davis is escorted to a court in Lahore on January 28. Today the high court granted the Pakistani government three more weeks to decide whether he has diplomatic immunity

The ex-Special Forces soldier being held in Pakistan for murder is a CIA spy.

President Barack Obama has claimed Raymond Davis has full diplomatic immunity as an embassy staffer.

However, it has now been confirmed by unnamed U.S. officials that the 36-year-old had been working as a CIA security contractor for the U.S. consulate in Lahore.

Davis, a former Special Forces soldier who left the military in 2003, shot the men in what he described as an attempted armed robbery in the eastern city of Lahore.

A number of U.S. media outlets knew the truth about Davis but had suppressed the news at the request of the Obama administration.

Davis is being held in Pakistan over claims he shot dead two men on January 27 in the city where he worked.

His
detention has sparked a diplomatic firestorm, with the U.S. seemingly
willing to risk relations with its closest ally in the war on terror to
get Davis, 36, back.

Mystery had swirled around who Davis is and what exactly he was doing in Pakistan.

The information has put further strain on relations between Pakistan and the U.S. as
Pakistan officials are expected to demand an explanation for why America
is spying on an ally.

It will also set to complicate the push for Davis' release.

Colorado television station 9NEWS initially reported Davis' status as a CIA agent after speaking to his wife.

She had referred the station to a Washington phone number that turned out to be the CIA.

The station had posted the story, but removed it at the request of the government. 'Because of the safety concerns, we decided to amend the story,' executive producer Nicole Vap was quoted as saying.

She added: 'But it remains accurate.'

Backlash: Pakistani protesters burn a U.S. flag and effigy of the U.S. Senator John Kerry during a protest against a Mr Davis. A placard left, reads: 'Pakistani court will decide the fate of Reymond Davis'

Protesters continued to march again today. The Pakistan government is caught between popular anger and the fury of the U.S. government over the ex-Special Forces soldier Davis

The U.S. says Davis shot the two armed men in self defence when they
tried to rob him on January 27 in the eastern city of Lahore.

They claim he
has full diplomatic immunity as an embassy staffer.

But this week a court gave Pakistan's government three more weeks to
decide if Mr Davis is entitled to diplomatic immunity as America
claims.

The decision was a blow to the efforts of Senator John Kerry, who was in Lahore lobbying for Davis' release. He had promised that Davis would be the subject of a criminal murder trial.

Pressure: President Barack Obama has again demanded the release of Davis

Pakistani police officials had said
they plan to try him for murder, arguing that while the Pakistanis did
have a loaded gun, there was no round in the chamber. They also claim Davis
shot one man as he was trying to flee.

It has also emerged that a third Pakistani, a bystander named Ibadur
Rehman, died when he was struck by an American car rushing to help Mr
Davis.

Pakistani police say they want to question the people
in the car. The U.S. has said very little about that death, and it's
highly unlikely any Americans in the car remain in Pakistan.

The Davis case has become a flashpoint for Pakistani nationalism and
anti-American suspicion, making it harder for Pakistani authorities to
back down despite intense U.S. pressure.

The revelations have given new life to conspiracy theories in Pakistan about
armed American mercenaries roaming the country's streets at will.

Thousands have rallied to demand that Davis be hanged and the Taliban
had threatened attacks against Pakistani officials involved in freeing
the Virginia native.

The disagreement has already risked spinning out of control in recent days amid
dangerous anti-American sentiment in Pakistan and U.S. threats of
stronger Pakistan sanctions.

It also threatens the relationship between the two spy agencies, the CIA and Pakistan's Inter-Services Intelligence agency.